Review of “The Intelligent Investor”, a helpful guide to investing by Benjamin Graham

During this time of financial turmoil, with the country’s economy sprinting towards recession, Stony Brook University MBA student (and former Treasurer of The Library Club) Sinan Cinar examines the textbook “The Intelligent investor”, which covers the ins and outs of smart investing.

This book doesn’t tell us how to beat the market. Instead, the purpose of the book is to supply, in a form suitable for laymen, guidance in the adoption and execution of an investment policy. Comparatively little was mentioned here about the technique of analyzing securities. There are three major topics which book is trying to accomplish.

· How we can minimize the odds of suffering irreversible losses

· How we can maximize the chances of achieving sustainable gains

· How we can control the self-defeating behavior that keeps most investors from reaching their full potential.

This book is pretty good guide for professional and non professional investor. To be an investor, you don’t have to be very knowledgeable about finance. If you read the book, even people who don’t know anything about stocks invest money into stocks. But they should consider the advice provided in the book.

Graham states that there are two types of investors that are considered. One of them is a defensive investor and the other one is an enterprising investor. The defensive investor should follow some steps if he doesn’t want to hit the wall in the first attempt. The biggest advice for the defensive investor is not to take higher risk. To control the risk level, the investor should keep some proportion between stocks and bonds in this portfolio. This range changes between 25% and 75%. It means that the investor should invest at least 25% or highest 75% to stocks and rest of proportion should be invested to the bonds. This proportion may change according to the condition and the risk level of the market. Also, if the investor is not successful to pick the right stocks and bonds, he should take professional advice from the professional brokers and portfolio managers. It is very important because if you don’t know how to go somewhere, you should take some help from the map and this map in this situation is professional portfolio managers and brokers.

For the enterprising investor, the steps vary a little bit according to the defensive investor. The book mentions that if we want to be enterprising investors, we should devote most of our time to analyze and collect the right information about the stocks. Further, the investor should do a lot of practicing before investment.

Actually, the book doesn’t guarantee the higher return in the investment but at least, it gives lots of useful tips how to be a successful investor and to protect ourselves from the risk in the investment. Further, it defines our common mistakes and delusions in the investments. One of them is patience. Firstly, the investor should be patient and should invest for the long run. Secondly, the investor shouldn’t invest emotionally in the stock market. Finally, we should also prepare ourselves for the bad results and determine the risk level which we afford to take in the investment.

For further reviews, or to purchase this book, visit amazon.com

http://www.amazon.com/Intelligent-Investor-Definitive-Investing-Practical/dp/0060555661/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1217353718&sr=1-1

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Going Global

Over the course of the past several months, the SBU Library Club has been working in conjunction with Frank Melville Library staff members Aimee de Chambeau, Joel Tornquist, and Maryanne Vigneaux to take part in a campaign designed to help end the book famine in many African universities. The club, comprised of both undergraduate and graduate students, was led by its president, Lauren Guenvere, and its two staff advisors, Victor Santiago and Kristen Reynolds, as a goal of $450 was raised to send 17 boxes (roughly 640 pounds) of current textbooks to St. Paul, MN, where the books were sorted and shipped to the countries in need. Most of the books were obtained from donations to the library by patrons and local community members and had copyright dates of 1985 or later. The club was delighted to see that so many staff members empathized with this dilemma, and generously contributed, by means of cash donation, to this cause. It was a wonderful thing!

The Library Club plans to continue this project as long as interest remains. A fund has been established to receive donations to help cover the cost of shipping, which amounts to approximately $16 per box. All donations are tax exempt. Feel free to contact The Library Club at thelibraryclub@gmail.com to see how you can help do your part to continue this campaign.

 

Taken from the annual SBU Library Newsletter, February 2008

Books For Africa

We here at The Library Club understand school can be tough. However, imagine how much tougher it would be without the books that we take for granted.

Books For Africa is a charity that takes books, sends them to Africa, and gets them into the hands that need them the most. http://booksforafrica.org/

[Youtube=http://youtube.com/watch?v=tSnWZyB7v9o]

We have many donated books, but we need money for postage to send them from Stony Brook University to the Books For Africa’s warehouse in Minneapolis Minnesota where they are packed into large cargo containers and then can be shipped to Africa.

Incentive

If you donate funds for postage you will get a button or a banner on our Books For Africa page with your company’s name and a link to your site as well as any contact information you provide. You can as an alternative provide your own button/banner if you have one.

Click here for examples of banner sizes
http://www.iab.net/standards/adunits.asp

$10 will get you a 120 X 90 pixels button
$20 will get you a 234 X 60 pixels banner
$25 will get you a 120X 240 pixels banner
$30 will get you a 392 X 72 pixels banner
$40 will get you a 468 X 60 pixels banner
$50 will get you a 120 X 600 pixels banner
$60 will get you a 160 X 600 pixels banner

$70 and over will get you a 300 X 600 and a blog post telling the world how wonderful you are.

You can send check/money orders payable to…..

SBF 220720

to the following address

The Library Club
c/o Victor Santiago
S3410 Melville Library
SUNY at Stony Brook
Stony Brook, NY 11790-3339

All donations are Tax Deductible!

If you are close to us and have current, quality textbooks some books you want to donate to Books
For Africa, feel free to contact us at thelibraryclub @ gmail.com and you will get a amazing post to show your friends and family.

If you happen to be on the SBU campus and want to donate funds in person please come to third floor stacks of the Melville Library and ask to speak to Victor or Kristen.